# D&R Incorporated > Regain your freedom! ## Pages - [Gallery](https://drinc.co.za/gallery/): This is how - [Debt counselling](https://drinc.co.za/debt-counselling/): Debt rehabilitation - [TERMS AND CONDITIONS](https://drinc.co.za/terms-and-conditions/): Application form - [Application form](https://drinc.co.za/application-form/): Request a free estimationApplication form Complete the application form for an obligation free assessment. - [Administration order](https://drinc.co.za/administration-order/): Debt rehabilitationAdministration order An Administration order can help you get to the next stage of your life while giving you... - [Free tips](https://drinc.co.za/free-tips/): Blog and articlesFree tips Read our article section, and find out more about debt rehabilitation and practical ways on how... - [FAQ](https://drinc.co.za/faq/): Debt rehabilitationFAQ Frequently asked questionsThere is a common misunderstanding in relation to what is commonly known as a “CONSOLIDATION” as... - [About us](https://drinc.co.za/about-us/): Debt rehabilitation - [Contact](https://drinc.co.za/contact/): Debt rehabilitation - [Debt Rehabilitation](https://drinc.co.za/debt-rehabilitation/): Debt rehabilitationDebt Rehabilitation D&R Incorporated offers 2 debt rehabilitation programsD&R Incorporated offers 2 debt rehabilitation programs, Debt Review and Administration... - [Home](https://drinc.co.za/): D&R IncorporatedOpportunity to regain control of your finances D&R Incorporated is a consulting and Debt management practice. We help people... - [Privacy Policy](https://drinc.co.za/privacy-policy/) ## Posts - [How Debt Solutions Can Transform Your Financial Situation](https://drinc.co.za/how-debt-solutions-can-transform-your-financial-situation/): How Debt Solutions Can Transform Your Financial Situation Are you struggling to make ends meet every month? Falling behind on... - [Why Customer Service Matters in Debt Review for South Africans](https://drinc.co.za/why-customer-service-matters-in-debt-review-for-south-africans/): Struggling with debt? Our expert debt counsellors in South Africa offer tailored solutions to help you regain financial freedom. Managing... - [Seeking help for your bad debts](https://drinc.co.za/help-from-bad-debts/): In this week’s blog we are going to cover how a consumer can seek help for these bad debts by... - [How does Interest work? What are the consequences to not paying your debts?](https://drinc.co.za/how-does-interest-work/): Now that we have a deeper understanding of what a loan is we can dive a - [Pro's and Con's to Debt Review](https://drinc.co.za/pros-and-cons-to-debt-review/): D & R Incorporated is also an accredited Debt Review Counsellor so let’s now list the Pro’s and Con’s - [What is a loan and how does interest effect your total debt?](https://drinc.co.za/why-is-my-debt-increasing-under-admin/): In the following week’s we aim to tackle some key financial topics such as: What is a loan? - [What are the Pro's and Con's to an Administration debt solution?](https://drinc.co.za/administration-debt-relief/): D & R Incorporated is an accredited Administrator so let's list the Pro's and Con's to an Administration Order debt... - [How long will Admin or Debt Review Last?](https://drinc.co.za/how-long-will-admin-or-debt-review-last/): As an accredited Administrator & Debt Review Counsellor the number one question we are always asked is:How long will I... - [What is the difference between Debt Review and Administration?](https://drinc.co.za/difference-between-debt-review-and-administration/): D & R is both an accredited Administrator & Debt Review Counsellor, but what is the difference between Debt Review... - [TIPS: "I'm under debt review and expecting a pension payout of R900k. Where do I start?"](https://drinc.co.za/tips-im-under-debt-review-and-expecting-a-pension-payout-of-r900k-where-do-i-start/): A Fin24 reader who is under debt review and about to resign wants to know what they should do with... - [TIPS: I'm not married in community of property, so why are we both under debt review?](https://drinc.co.za/tips-im-not-married-in-community-of-property-so-why-are-we-both-under-debt-review/): A couple's plan to buy a house has been halted, after finding that both were listed as under debt review... - [Debt consolidation loan vs Debt Review. What’s the difference?](https://drinc.co.za/debt-consolidation-loan-vs-debt-review-whats-the-difference/): There has always been a misunderstanding about the difference between debt review and a debt consolidation loan as many believe... # # Detailed Content ## Pages This is how we workGallery Meet our teamWe provide invaluable Debt Management services that allow your financial dream to become your reality. Enjoy instant debt relief while we handle the restThe road to financial independence starts hereOur team WE ARE PROUD OF OUR DEDICATED TEAM Debt rehabilitationDebt counselling Debt counselling can help you get to the next stage of your life while taking the weight of debt off your shoulders. It will allow you to focus on the really important things while we handle the rest! For Individuals whose debts exceed the R50000,00 threshold applicable to Administration Orders, we are able to offer our clients another effective Debt Solution known as Debt Review. BENEFITS The key benefits of Debt Review are that a Debtor’s monthly obligations to his/her creditors are re-structured based on the Debtor’s affordability and we are able to offer our clients immense savings in the form of vastly lower interest rates as well as a huge saving on credit life insurance on their debts. Debt Restructuring Court OrderDebt review You must be permanently employed or self employed There is no limit on the amount of your debt Claims where legal action has already commenced cannot be included Housing bonds and vehicle finance agreements can be included Payments are made to your creditors through a registered distribution agency on a monthly basis You may not obtain further credit until your current debt has been paid in full You receive the protection of a debt restructuring court order that protects your salary and your assets No more harrassment from creditors Interest rates and repayments are reduced in accordance with your affordability You pay one monthly/weekly instalment that you can afford to cover all your debt Sufficient provision is made for your basic living expenses... Application formTerms and conditions Please reead carefully our Terms and conditions document befor you send your application form. POWER OF ATTORNEY I hereby, confirm that I am duly authorized to sign this Power of Attorney, the contents of which I have noted and fully understood. I nominate Shawn Davies NCRDC3115 to act as my lawful agent authorized to aquire information relating to my credit obligations and verify my credit score with the intention to: 1 ) Construct a credit profile of myself including my creditors, judgements, standing liabilities and my overall credit ratings and scorings; 2 ) Engage with my creditors to obtain full and final settlement amounts; 3 ) To receive certified balances of what I owe to creditors; 4 ) To draw a report from any registered Credit Bureau; 5 ) To nominate an attoney to act on my behalf to rescind any judgement or order against me; 6 ) To allow Shawn Davies NCRDC3115 to sign the debt review application on my behalf. 7 ) Draw the requisite bank statements from my account, for at least three months prior to this authority; 8 ) Provide me with an outcome Report based on the findings. 9 ) To apply on my behalf for a Debt Review Order and/or any other form of debt rehabilitation, including the transfer of my/our file from previous companies, should it be needed. 10 ) To substitute credit life or credit cover insurance, in particular on credit agreements where the credit provider requires such... Request a free estimationApplication form Complete the application form for an obligation free assessment. Personal informationPlease fill in details marked with *Name *Last name *ID Number *Martial status *MarriedDivorcedWidowedSingleNOTEPlease upload your divorce decree. Marriage contract *Anti nuptual contractCommunity of propertyNOTEPlease upload your marriage certificate Residential address *City *SuburbZIP / Postal Code *CountryAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua & BarbudaArgentinaArmeniaArubaAscension IslandAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBritish Virgin IslandsBruneiBulgariaBurkina FasoBurundiCabo VerdeCambodiaCameroonCanadaCaribbean NetherlandsCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos IslandsColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCook IslandsCosta RicaCroatiaCubaCuraçaoCyprusCzechiaCôte d'IvoireDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEswatiniEthiopiaFalkland IslandsFaroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench South TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island And Mcdonald IslandHondurasHong Kong SAR ChinaHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKosovoKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacao SAR ChinaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorth KoreaNorth MacedoniaNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian TerritoriesPanamaPapua New GuineaParaguayPeruPhilippinesPitcairn IslandsPolandPortugalPuerto RicoQatarRomaniaRussiaRwandaRéunionSaint HelenaSaint Kitts and NevisSaint LuciaSaint Vincent and the GrenadinesSamoaSan MarinoSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint MaartenSlovakiaSloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia and South SandwichSouth KoreaSouth SudanSpainSri LankaSt. BarthélemySt. MartinSt. Pierre & MiquelonSudanSurinameSvalbard and Jan MayenSwedenSwitzerlandSyriaSão Tomé & PríncipeTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad & TobagoTunisiaTurkeyTurkmenistanTurks & Caicos IslandsTuvaluU. S. Virgin IslandsUS Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited States of America (USA)UruguayUzbekistanVanuatuVatican CityVenezuelaVietnamWallis And Futuna IslandsWestern SaharaYemenZambiaZimbabweOwnershipRentingOwnerPeriod at addressPostal address *Same as residentialDifferent to residentialPostal address *City *SuburbZIP / Postal Code *CountryAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntarcticaAntigua & BarbudaArgentinaArmeniaArubaAscension IslandAustraliaAustriaAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBosnia and HerzegovinaBotswanaBouvet IslandBrazilBritish Indian Ocean TerritoryBritish Virgin IslandsBruneiBulgariaBurkina FasoBurundiCabo VerdeCambodiaCameroonCanadaCaribbean NetherlandsCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos IslandsColombiaComorosCongo, Democratic Republic of theCongo, Republic of theCook IslandsCosta RicaCroatiaCubaCuraçaoCyprusCzechiaCôte d'IvoireDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEswatiniEthiopiaFalkland IslandsFaroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench South TerritoriesGabonGambiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island And Mcdonald IslandHondurasHong Kong SAR ChinaHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKenyaKiribatiKosovoKuwaitKyrgyzstanLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyaLiechtensteinLithuaniaLuxembourgMacao SAR ChinaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorth KoreaNorth MacedoniaNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian... Debt rehabilitationAdministration order An Administration order can help you get to the next stage of your life while giving you peace of mind that your debt is being paid off. With the installments offered based on your affordability, you can enjoy the financial freedom you deserve! For individuals whose debts do not exceed the R50 000. 00 threshold and are earning a lower income will qualify for a program we offer called Administration order. BENEFITS The key benefits to an Administration order are that a debtors monthly obligations to his/her creditors are reduced based on the debtors affordability. With this one installment per month, the debtor will enjoy financial freedom while they are protected from any creditor legal actions and harassment by way of court orderAdministration Court OrderAdministration Order You will only pay one affordable installment per month for all of your debt. Your debt cannot exceed R50 000. 00 Judgments can be included. Bonds and vehicle repayments cannot be included as they exceed the R50 000. 00 threshold. All garnishee orders (except for maintenance orders) will be removed from your salary deductions. You may not obtain any further credit until all your current debt is paid in full. You will receive protection from your creditors through a court granted order. No more harassment from your creditors You will pay one monthly installment for all of your debt. Sufficient provisions are made for your basic living expenses so that you live comfortably while paying off your debt. A 74U clearance... Blog and articlesFree tips Read our article section, and find out more about debt rehabilitation and practical ways on how to achieve better debt structureOur programsDebt Rehabilitation D&R Incorporated offers 2 debt rehabilitation programs, Debt Review and Administration order. Both of these programs are designed to help you pay off your debt while enjoying legal protection from your creditors. Each program offers one installment for all of your debt which gives you more money in your pocket every month. READ MOREREAD MORECATEGORIES Debt rehabilitationFAQ Frequently asked questionsThere is a common misunderstanding in relation to what is commonly known as a “CONSOLIDATION” as opposed to the Debt Restructuring mechanisms that we employ in assisting our valued clients. A Consolidation as it currently applies largely in the South African Credit Industry, is in essence a LOAN whereby a credit provider will settle all or a portion of your existing debt (and in some instances, lend and advance to you a further sum of money) and you then re-pay that credit provider the amount that they have used to settle your debt (and any additional loan amount) together with interest thereon, initiation fees, administration charges, credit life insurance and VAT. The persuasion towards this “Consolidation” lies in the fact that you feel that your creditors are now paid in full and you are only liable for one installment every month/week as opposed to paying three, four or more different creditors individually. The reality is however, that by taking on a “Consolidation Loan” (which in effect is what it is), you have basically just doubled your debt because you are paying interest and costs on the lump sum borrowed to settle your initial debt to the Consolidator. In a nutshell, you’re paying interest on interest and you must bear in mind that the Consolidator probably obtained a discount from your initial creditors because they would have requested settlement balances and negotiated discounted settlements. This discount is not passed on to you the Consumer. If anything, this... Debt rehabilitationAbout us Our aim is to provide debt relief to private and corporate employees, particularly with regards to financial rehabilitation. Our aim is to provide debt relief to private and corporate employee’s, particularly with regards to financial rehabilitation. The South African Financial services arena has recently seen an unexpected proliferation of products, which in its wake has left a mass number of people in debt. These actions have increased the individual person’s monthly spiral of debt, beyond their control. The credit facilities, easily available to the majority of the lower and middle-income persons, have resulted in an ever-increasing debt spiral. Their “take home” pay has in most cases fallen below the bread line. The infrastructure, systems and software developed by D & R Incorporated, positions the company as a revolutionary corporate gateway to debt relief. Utilising an established network of associates and offices, we have emerged as market leaders in this particular field of Administrators. Our Mission Our mission is to help both private and government employee's to break free from debt. We take great pride in helping families turn around their financial situations and to get a fresh start that everyone deserves. Clients helped8000+Total valueR800mDebt review program is designed to help you pay off your debt while enjoying legal protection from your creditors. This program offers one installment for all of your debt which gives you more money in your pocket every month. For requirements and more details, book a free meeting with one of our experts! An... Debt rehabilitationContact Contact us and feel free to ask any questions related to your finances. Our discretion is guaranteedOur officesPMB BRANCH 35 Henrietta StreetPietermaritzburgTel: (033) 342 6595DURBAN BRANCH Unit 1 St Elmo 396 Che Guevara Road, Berea, Durban Tel: (033) 342 6595KOKSTAD BRANCH 76 Hope StreetOffice No. 10, KokstadTel: (033) 342 6595 Debt rehabilitationDebt Rehabilitation D&R Incorporated offers 2 debt rehabilitation programsD&R Incorporated offers 2 debt rehabilitation programs, Debt Review and Administration order. Both of these programs are designed to help you pay off your debt while enjoying legal protection from your creditors. Each program offers one installment for all of your debt which gives you more money in your pocket every month. LEGAL Our Debt Solutions are based entirely upon and are completely compliant with current South African Legislation. We have a team of Qualified Legal Professionals whose expertise and pride in their field of work keep them at the forefront of the ever evolving legal arena, particularly in the field of Debt Rehabilitation and Consumer Protection. Our services extend to ensuring the protection of our clients estates in the form of providing a legal advisory service as well as the drafting of Wills. Together with a team of experienced Practicing Attorneys who are based throughout Kwazulu-Natal, we are able to assure our clients of Superior Legal Services, peace of mind and a Debt-Free future. Debt review You must be permanently employed or self-employed There is no limit on the amount of your debt Claims, where legal action has already commenced, cannot be included Housing bonds and vehicle finance agreements can be included Payments are made to your creditors through a registered distribution agency on a monthly basis You may not obtain further credit until your current debt has been paid in full You receive the protection of a debt restructuring... D&R Incorporated Opportunity to regain control of your finances D&R Incorporated is a consulting and Debt management practice. We help people that are over-indebted Explore Opportunities Apply now Our programs Debt Rehabilitation D&R Incorporated offers 2 debt rehabilitation programs, Debt Review and Administration order. Both of these programs are designed to help you pay off your debt while enjoying legal protection from your creditors. Each program offers one installment for all of your debt which gives you more money in your pocket every month. Debt Review READ MORE Administration order READ MORE Debt does not discriminate Debt does not discriminate Everyone struggles at some point in their life, that is a part of being human. There are ups and there are downs, there is no shame in that, but you don't need to struggle all the time, especially when it comes to your debt. Debt rehabilitation can help you to get to a better stage of your life and take a weight off your shoulders. This will let you focus on the really important things in life while we handle the rest. We care We Understand we provide Solutions Contact one of our trained professionals today for a no-obligation, confidential and free-of-charge consultation today to find out how. Free consultation We will help you with Debt management and Budgeting Debt Relief to Private and corporate Employee's Financial Rehabilitation End Creditor harassment D&R | Providing debt solutions since 1998. About us Our aim is to provide debt relief to private and... PrivacyD&R INCORPORATED PRIVACY POLICY 1. PRIVACY NOTICE 1. 1 D&R Incorporated processes personal information in terms of this policy when we act as a responsible party. 1. 2 This policy (read with other notices given to individual data subjects) is our notice in terms of section 18 of the Protection of Personal Information Act, 2013 (POPIA). 1. 3 This policy describes what personal information we process, where we collect it, why we process it and the legal basis upon which we do so and generally, how we do so. 2. THE INFORMATION WE COLLECT AND PROCESS 2. 1 INFORMATION RELATING TO OUR SERVICES2. 1. 1 We process personal information in relation to our legal and financial services (Service Information) including names, identity, passport or registration numbers, VAT numbers, contact information (phone numbers, email and other addresses) information in communications with our clients and others relating to our services, bank account details, financial information, employment history, marital status and children. 2. 1. 2 Our clients and their employers or representatives are the main source of the Service Information but we also source it from others on our clients’ instructions. 2. 1. 3 We process Service Information to provide, bill and obtain payment for our services, ensure the security of our business and systems including our website, comply with the law, charging VAT and keeping records of our dealings with our clients and securely administering our company and marketing our services. 2. 1. 4 We process Service Information based on consent or... ## Posts How Debt Solutions Can Transform Your Financial Situation Are you struggling to make ends meet every month? Falling behind on payments can feel overwhelming, but you don’t have to face it alone. A debt solution tailored to your needs can help you regain control of your finances, protect your assets, and avoid legal action. Here’s how debt review and administration services can offer you a lifeline during financial difficulties. What Is Debt Review? Debt review is a regulated process designed to assist individuals in financial distress. If you’re unable to keep up with your monthly instalments, debt review can restructure your payments into a manageable plan. This gives you the breathing space you need to improve your financial situation without the fear of harassment from creditors. Why Consider Debt Solutions? Many South Africans face mounting debt due to unforeseen expenses, job loss, or rising living costs. Without intervention, missed payments can quickly lead to legal action, repossessions, or worse. Debt solutions like debt review offer: Affordable Monthly Instalments: Your debt is restructured into a single, affordable payment plan. Legal Protection: Under debt review, creditors cannot take legal steps against you. Financial Stability: A clear path to paying off your debt gives you peace of mind and a chance to rebuild your finances. Benefits of Debt Review Debt review is more than just a debt solution; it’s a safeguard against financial ruin. Here are some of the key benefits: Avoid Legal Action: Once you’re under debt review, your creditors are prohibited... Struggling with debt? Our expert debt counsellors in South Africa offer tailored solutions to help you regain financial freedom. Managing your finances can be stressful, especially when you’re struggling to pay your monthly payments. Many South Africans find themselves overwhelmed by debt, not knowing where to turn for help. That’s where our expert team of debt counsellors comes in. We provide reliable debt solutions tailored to your financial situation. What is Debt Review? Debt review is a legal process in South Africa designed to assist people who are struggling with their monthly repayments. It helps by restructuring your debt into more affordable monthly payments, giving you the chance to regain control of your finances while being protected from legal action by creditors. Why Customer Service is Key in Debt Review We believe that excellent customer service is the foundation of a successful debt review process. Our debt counsellors are committed to guiding you every step of the way. Whether it’s answering your questions, helping you understand your options, or creating a realistic repayment plan, we’re here to make the process as stress-free as possible. How Our Expert Team Helps You Our expert team of debt counsellors is trained to assess your financial situation and create a customised plan that works for you. We understand that every client is different, and we focus on providing debt solutions that align with your needs. From negotiating with creditors to reducing your monthly repayments, we aim to provide support that makes a real difference. Benefits of Debt Review Affordable Payments: Your monthly payments will be adjusted to match your income, ensuring you can manage them comfortably. Legal Protection: Once under debt review, creditors cannot take legal action against you.... In this week’s blog we are going to cover how a consumer can seek help for these bad debts by way of obtaining a debt restructuring court order, such as Debt Review or an Administration Order, depending on your personal circumstances. A debt restructuring court order is obtained through the Magistrates Court which protects the debtor’s assets and income. This can be done when a debtor makes an application in the prescribed format, through an accredited Debt Review Counsellor or Administrator to create a formal and legally-binding agreement between the debtor and their creditors to pay back the debts over a period of time. The application will include (but not limited to) the following details: • The debtor's personal details• Employment details• A Statement of the debtor's financial affairs• Proposed repayment plan• Consent of the Administration and / or Debt Review A copy of this application with all supporting documentation will be delivered to each creditor within the legal required notice period to allow them to object the application accordingly. A court date will be set for this application to be heard where the debtor and their lawyer (arranged by their Administrator or Debt Counsellor) will appear in the Magistrate’s Court on the date provided by the clerk of the court. The application will be heard by a Magistrate where any creditors may also attend should they wish to object to the debt listed in the application – providing that they furnish proof of the same. The Magistrate will then... Now that we have a deeper understanding of what a loan is we can dive a bit deeper into the interest rate itself. Interest rates are determined by the type of loan such as credit cards, clothing accounts, furniture accounts, student loans, car finance or a mortgage loan for a house. Every loan has its’ own interest rate and this interest rate will be calculated on a number of different factors such as: • Principal amount borrowed• Length / term of the loan• Monthly instalment• Repayment Plan• Repo rate• Credit Record (Score) of the consumer (borrower) Due to interest rates potentially reaching 30% per annum (depending on the repo rate at the time), a consumer can quickly start to feel the pinch of a high instalment repayment plan for credit taken out. This may cause you to take out another line of credit to cover normal day to day costs. This will result in another interest-bearing account adding to your financial struggles. Eventually the repayments on these credit accounts will be higher than you can afford to pay out every month, leaving you with little to no money to cover your essential living costs. Non-payment on these accounts will lead to your creditors handing your overdue accounts to a collection agency where calls from them can be overwhelming and stressful. The frequency of this harassment could lead you to not answer your phone anymore, not go to work and throw away final notice letters (un-opened) that are sent in the... D & R Incorporated is also an accredited Debt Review Counsellor so let's now list the Pro's and Con's to a Debt Review as a debt relief solution: Pro's to Debt Review • You receive the legal protection of a debt restructuring court order that protects your salary and assets • There is no limit on the total amount of debt • A house bond and / or car finance can be included. This could save you from losing your house or having your car repossessed • Your debt counsellor will negotiate reduced interest rates and installments with your creditors for you according to your affordability • Pay one affordable monthly installment for all of your debt • A custom budget is created for you to ensure sufficient provision has been made for your basic living expenses that enables you to live comfortably whilst you pay off your debt • No more harassment from your creditors, by law your creditors must stop all communication with you • This solution will be typically paid off within 5 years (60 months) provided that a house bond has not been included • Immediate relief from your bad debts • Qualifying individuals can be permanently employed OR self employed • No upfront legal fees are required • A Clearance Certificate will be issued once all your debt has been settled, this will be used to remove any Debt Review flagging from your credit recordCon's to Debt Review • Claims where legal action has already... In the following week’s we aim to tackle some key financial topics such as: What is a loan? How does interest work and how does this effect you? Let’s start at the beginning by firstly explaining - WHAT IS A LOAN? If you, as a consumer, borrow money from an accredited lender that makes you a debtor (borrower) and it makes the lending company your creditor. A loan can be broken down into the following components: • Principal debt This is the original amount of money that you have borrowed • Interest Rate Interest is the amount of money a consumer pays to borrow money. This is typically charged as an annual percentage rate. When a lender provides a loan to a consumer, they make a profit off of the interest paid on top of the principal amount. • Initiation Fee This is a once off fee which covers the cost of entering into the loan • Service Fee This is a monthly fee charged to manage and maintain the loan • Consumer Protection Plan (Also known as Credit Life Insurance) This is an insurance product that is designed to cover the cost of your total debt if you are not able to pay it back due to unforeseen circumstances such as disability, unemployment or death. Credit life insurance is mandatory on most credit arrangements and will be there for the term of the loan. A consumer will have the choice to arrange their own credit life insurance that meet... D & R Incorporated is an accredited Administrator so let's list the Pro's and Con's to an Administration Order debt solution: Pro's to Administration • You receive the legal protection of a debt restructuring court order that protects your salary and assets • Pay one affordable monthly installment for all of your unsecured debt • All garnishee orders will be removed from your salary deductions (except child support) • A custom budget is created for you to ensure sufficient provision has been made for your basic living expenses that enables you to live comfortably whilst you pay off your debt • No more harassment from your creditors, by law your creditors must stop all communication with you • Immediate relief from your bad debts • No upfront fees are required • A 74U Clearance Certificate will be issued once all your administration debt is settled and the fact that you are under admin will no longer be reflected on your credit record • If you default on your payment plan your creditors cannot simply terminate the admin order immediately providing you with legal protection that is second to none Con's to Administration • Your total debt cannot exceed R50 000 • House bonds and Car Finance cannot be included • Self Employed individuals do not qualify for Administration • Once under admin, you may not obtain any further credit until your current debt has been paid in full • Legal fees are charged in accordance with the law to enable... As an accredited Administrator & Debt Review Counsellor the number one question we are always asked is:How long will I be under Debt Review or Administration? The answer actually differs from person to person, this is because it all depends on: 1. Your Total Debt Do you have R15, 000 or R50, 000 debt? 2. Your Monthly Income & Expenditure Is it based on one income or two? Do you have dependents to consider or perhaps you don’t have any dependents. 3. Instalments Payable How much should you be paying for this amount of debt? Also, what can you afford after your monthly essentials are taken care of? And lastly, 4. Interest Rates This is the interest charged by your creditors as per your contract that you signed with them originally. Debt Review Under Debt Review your debt counsellor will negotiate new instalments and reduced interest rates, on your behalf, in accordance with your affordability. You will find that Debt Review is typically paid within 60months (5 years), provided that a house bond has not been included. A clearance certificate is issued once your debts have been paid in full (and your bond repayments are up to date). This clearance certificate is what will be required by the Credit Bureaus to remove any Debt Review flagging from your name. There are so many benefits to being under Debt review and those above are just to name a few. You can always contact D&R Incorporated to find out how we can... D & R is both an accredited Administrator & Debt Review Counsellor, but what is the difference between Debt Review and Administration? There are four main differences that set Debt Review apart from Administration which can be broken down into the following simple categories: 1. Limits on Debt Under Administration your total debt cannot exceed R50 000 whereas under Debt Review there is no limit on the total amount of debt. 2. House Bonds and Car Finance Debt Review has the ability to include a house bond and / or car finance unlike Administration which does not have this ability as it would exceed the R50 000 total debt threshold and therefore these expenses are included in your monthly budget instead. 3. Judgements & Claims with Legal Action One of the advantages of Administration is the ability to include judgements under your admin order. This in turn means that existing garnishee orders (except for child support) will be removed from your salary deductions. Unfortunately, any claims where legal action has already commenced cannot be included under Debt Review, however, provision will be made for these in your monthly budget. 4. Self-Employment To qualify for Debt Review or Administration an individual must be permanently employed. In addition, only Debt Review allows an individual to be self-employed as well as pensioners that do not receive a government pension. Quick Reference Table   No Limit on the total amount of Debt Ability to include a house bond and / or car finance Claims... A Fin24 reader who is under debt review and about to resign wants to know what they should do with their pension payout. They write: I'm planning on resigning as a government employee after 20 years of service. I expect a pension payout of R900 000. I'm under debt review, and I owe creditors R280 000. I plan on pursuing real estate entrepreneurship. I'm aware that when I resign, I will have no source of income. What should I do about my debt, and where do I start to pursue my dream? Benay Sager, chief operating officer at DebtBusters, responds: As a disclaimer, we do not give financial advice, especially on retirement-related matters. So the below comments cannot be construed as financial advice. However, we can try to answer this question by sharing our own experience in the debt counseling industry. As a starting point, we want to congratulate this consumer for their dedicated work as a public sector employee for 20 years – that is an amazing achievement. The consumer wants to start a new business and is considering using the lump sum payment to do so. At the same time, they are under debt review and still owe money to creditors. So, they have the dilemma of whether to use a lump sum payment to reduce debt or use it to start a business. Debt review is an effective way of paying back debt, and it works best when someone has a source of regular income. If a... A couple's plan to buy a house has been halted, after finding that both were listed as under debt review despite not being married in community of property. They look to an expert on how to rectify this. They write: I was under debt review and got a clearance certificate, but the debt review companies also had my husband listed under debt review, and he never applied. We are not married in community of property. How can we clear his name, and how long should we wait for our credit scores to be good again? We want to buy a house. Benay Sager, Head of DebtBusters responds: Marital status is an important determinant when a consumer applies for debt review or debt counselling. For consumers who are married in Community of Property, everything they own and owe is seen as jointly owned (including debt), and therefore both spouses need to apply to debt review at the same time. This means if one spouse applies to debt review, the other spouse also needs to. For consumers who are married with an Antenuptial Agreement (i. e. an agreement signed before two spouses get married), there is no such requirement. For those who are married with an Antenuptial Agreement, each spouse is liable for what she or he owns and owes, including debt. An overwhelming majority of marriages in South Africa are conducted in Community of Property. The quickest way to find out whether one is married in Community of Property is this:... There has always been a misunderstanding about the difference between debt review and a debt consolidation loan as many believe these two products are the same. In fact these two products are very different and the one will leave you worse off than before... . When it comes to being in debt, many people are looking for the fastest and easiest way to get out of it BUT are you actually getting the help you need? Here we will outline the two most sought-after debt relief options to help you make the right decision for you and your family’s financial needs. Debt Review The National Credit Act (NCA) introduced the Debt Review process to South Africans in 2007 simply to help those who are struggling to meet their monthly financial obligations to their creditors. Debt review is a legal solution to your debt problems. This product protects you from your creditors and protects your assets like your vehicle and home. The Debt Review process has been extremely successful in getting people out of debt while taking into consideration your day to day living expenses. We do this by creating a comprehensive budget for you that ensures your living expenses are covered without having to take out any more debt. What are the benefits of going under Debt Review? • There is no limit to how much debt can be placed under Debt review. • You and your assets are protected from your creditors by way of a court order. •...